Morning News Call - India, December 6

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FACTORS TO WATCH
10:00 am: Finance Minister Arun Jaitley’s pre-budget meeting with industry
and trade groups in New Delhi.
02:30 pm: RBI’s Monetary Policy Committee to announce interest rate decision
in Mumbai.
02:45 pm: RBI Governor Urjit Patel briefs media post release of monetary
policy statement in Mumbai.
05:00 pm: RBI analyst conference call post Monetary Policy Committee rate
decision in Mumbai.
INDIA TOP NEWS
• India's central bank, wary on inflation, set to keep rates on hold
The Reserve Bank of India looks set to keep its policy rate on hold, after
inflation accelerated to a seven-month high and stronger economic growth reduced
the need for monetary stimulus.
• More Chinese lenders plan to pursue RCom in insolvency court -sources
Two major Chinese lenders plan to support a move by China Development Bank to
put Indian wireless carrier Reliance Communications into insolvency court as
they seek to recover about $2 billion in debt, said three people with knowledge
of the matter.
• Google unveils new Android software in India to power cheap smartphones
Alphabet Inc's Google launched a stripped-down version of its Android software
in India on Tuesday, as it attempts to woo millions of basic phone users in the
fast-growing wireless services market.
• Indian refiners turn to use dirty fuel to produce power, gas
Indian oil refiners are drawing up plans to use petroleum coke for power
generation and to produce syngas after the government banned use of the heavily
polluting fuel in and around New Delhi.
• India's cenbank reiterates warnings about trading in Bitcoins
India's central bank on Tuesday reiterated its concerns about Bitcoins, just
days after the cryptocurrency hit a record high of just under $11,800, stoking
fears that a rapidly swelling bubble could burst in a spectacular fashion.
• India's case against Mallya politically motivated, UK court hears
The Indian government’s fraud case against tycoon Vijay Mallya is baseless and
politically motivated, his defence lawyer told a London court on Tuesday as she
battled to prevent his extradition to his home country.
• Top Indian insurer LIC to slow stock investments after bumper buy
State-owned Life Insurance Corp of India will likely slow stock purchases for
the rest of the fiscal year after nearly doubling its equity market investments
in the first half from a year earlier.
GLOBAL TOP NEWS
• Trump to recognize Jerusalem as Israel capital, upending decades of U.S.
policy
President Donald Trump will recognize Jerusalem as Israel's capital and set in
motion the relocation of the U.S. Embassy to the ancient city, senior U.S.
officials said, a decision that upends decades of U.S. policy and risks fueling
violence in the Middle East.
• Russia banned from Pyeongchang Winter Olympics
Russia has been banned from the 2018 Pyeongchang Winter Olympics after the IOC
found evidence of an "unprecedented systematic manipulation" of the anti-doping
system that has led to a series of suspensions for the country's athletes in
recent months.
• Trump lawyer denies Deutsche Bank got subpoena on Trump accounts
A U.S. federal investigator probing alleged Russian interference in the 2016
U.S. presidential election asked Deutsche Bank for data on accounts held by
President Donald Trump and his family, a person close to the matter said on
Tuesday, but Trump's lawyer denied any such subpoena had been issued.
LOCAL MARKETS OUTLOOK
(As reported by NewsRise)
The SGX Nifty Futures were at 10,116.50, down 0.27% from its previous close.
Indian government bonds are likely to trade steady ahead of the Monetary
Policy Committee’s decision on interest rates due later today. The yield on the
benchmark 6.79 percent bond maturing in 2027 is likely to trade in a
7.05percent -7.08percent band till the MPC decision, a trader with a primary
dealership said.
The Indian rupee will likely edge higher against the dollar, as concerns of
a likely U.S. government shutdown stalled the greenback’s recent gains triggered
by the Senate’s approval of a tax bill.
GLOBAL MARKETS
• Wall Street fell on Tuesday as a technology rebound lost steam and Walt
Disney Co shares dipped, while investors assessed how a Republican U.S. tax
overhaul would impact corporate earnings.
• Asian stocks slipped, pressured by losses on Wall Street as the technology
sector stuttered yet again after a brief rebound, while the dollar sagged on
lower long-term U.S. yields.
• The dollar edged down, as concerns about a possible U.S. government
shutdown offset optimism about progress on tax reform legislation, while the
Australian dollar weakened after economic data showed worrying signs for
growth.
• Short-dated U.S. Treasury yields rose to their highest in more than eight
years on Tuesday as investors increasingly expected the U.S. Congress to pass
tax reform legislation and the Federal Reserve to raise interest rates several
times next year.
• Oil prices dipped, as refined product inventories in the United States
rose in what the market interpreted as a sign of lacklustre demand.
• Gold prices nudged down early on Wednesday after touching a two-month low
in the previous session, despite a slightly weaker dollar.
CLOSE FII INVESTMENTS EQUITIES DEBT
PNDF spot 64.41/64.44 December 5 -$228.6 mln $236.25 mln
10-yr bond yields 7.11 pct Month-to-date - $230.97 mln
Year-to-date $8.60 bln $25.97 bln
For additional data:
India govt bond market volumes
Stock market reports
Non-deliverable forwards data
Corporate debt stories [IN CORPD]
Local market closing/intraday levels [IN SNAPSHOT]
Monthly inflows [INFLOWS RTRS TABLE IN]
($1 = 64.3500 Indian rupees)